Cisco designs and sells networking and communications technology and services. It creates networking equipment such as switches and routers used primarily by businesses and Internet service providers to route data such as emails, videos, files, and other digital communication. For example, an email that you send to a distant friend travels through various switches and routers made by companies like Cisco, Juniper, Huawei, and Alcatel-Lucent along the path to its destination.
Over the past few years, Cisco has had a nearly 60% market share in Switches market (although the figure has declined in recent years). Similarly, Cisco's share in the router market has also been comfortably over 50% in recent years. Cisco's share in the enterprise WLAN market is also around 50%. The company's dominance in these market spaces is expected to continue in the coming years, with competitors commanding a significantly lower share in these markets.
In addition to networking hardware, Cisco provides maintenance and support services to its customers to help them fix problems that occur with networking equipment. Cisco's network service revenues and profits are dependent on the installed base of Cisco switch and router equipment.
Cisco also operates in other non-hardware-centric segments such as Unified Communications, business messaging, conferencing, collaboration endpoints, end-to-end digital video systems, Data Over Cable System Interface Specification (DOCSIS), and access equipment. Cisco is a clear market leader in these market domains as well.